Speech of The Chairperson and Managing Director Mrs. V. R. Iyer Delivered At The 18 th Annual General Meeting of Bank of India Held On 10.07.2014 -------------------------------------------------------------------------------- Dear Shareholders, Namaskar, It gives me pleasure to be meeting all of you once again. A very warm welcome to all of you at the 18 th AGM of your bank. By now, all of you would have glanced through the Bank s Annual Report for FY 2013-14. You would appreciate that we endured challenging times last year. The scenario is looking better this year with a stable Government, which has begun unfolding its growth agenda. ECONOMIC OVERVIEW There is a renewed surge in the global economy led by encouraging signals from U.S and Japan while China is set to maintain its growth momentum. However, the major push to growth is from emerging market and developing economies with the BRICS also acting as a major facilitator to global growth prospects. Growth in the domestic front is a pertinent factor to watch for this financial year. Latest data from Central Statistical Organization (CSO) show that Indian economy grew 4.7% during FY14, only 20 bps more than FY 13 growth. The new financial year has begun on a positive note. Industry showed a positive growth of 3.4% for April. Current Account Deficit (CAD) is $ 32 billion or 1.7% of GDP for FY 14 against $87.8 billion in FY13 (4.8% of GDP). Reforms on infra sector has started, albeit gradually. The Cabinet Committee on Investment has got many projects off the ground. Government has made clear its intent that bold reforms are a sine qua non and fiscal populism has to end. This positivity gives rise to optimism that 5.5% growth is a given for FY 2014-15 with an upward bias. Banking sector will play a major role. With a GDP growth assumption of 5.5%, credit growth of 17-18% is expected. The contours of banking in the coming years will be determined by the above mentioned developments. I am sure we will be able to present a sterling performance in the future though there was a
slowdown phase during the past couple of years. I once again thank you all on behalf of the entire BOI team for the unstinted support. Bank of India Overview A strong pan-india network is one of our inherent strengths and we have been leveraging it successfully. Our domestic network boasts of around 4646 branches and 4200 ATMs with a pan-india presence. We have a strong overseas footprint as well with 56 centres. This extensive network has helped us build a captive customer base. We also have 3 domestic and 5 overseas subsidiaries Bank s performance I would now like to touch upon highlights of our Bank s performance for the year 2013-14 Business Growth Global Business-mix of the Bank reached a level of Rs. 8,53,202 crore as on 31st March 2014 from Rs. 6,74,808 crore as on 31st March 2013, registering a growth rate of 26.44%. The Banks Total Deposits went up from Rs. 3,81,840 crore as on 31st March 2013 to Rs. 4,76,974 crore as on 31 st March 2014 by 24.91% and Gross Advances went up from Rs.2,92,968 crore to Rs.3,76,228 crore as on 31st March, 2014 i.e. by 28.42%. Domestic Business Deposits grew from Rs. 2,94,067 Crore on 31 st March, 2013 to Rs. 3,63,590 Crore on 31 st March, 2014 (Growth 23.64%) Advances grew from Rs. 2,04,036 Crore on 31 st March, 2013 to Rs.2,64,260 Crore on 31 st March, 2014 (Growth 29.52%) CASA Deposit grew from Rs. 93,800 Crore on 31 st March, 2013 to Rs.1,05,467 Crore on 31 st March, 2014 (Growth 12.44%) Overseas Business Bank is having 56 branches/ offices across the world. Overseas Business grew from Rs. 1,76,705 Crore on 31 st March, 2013 to Rs. 2,25,352 Crore on 31 st March, 2014 (Growth 27.53%). It constitutes 26.41% in the total business mix of the Bank.
Profitability Your Bank posted an Operating Profit growth of 12.94% during FY 2013-14, from Rs.7458 Cr. During FY 2012-13 to Rs. 8,423 crore during FY 2013-14 Net Profit of the Bank for FY 2013-14 was Rs. 2,729 Crore as against Rs. 2749 Crore during FY 2012-13. The Non-Interest Income during the year 2013-14 registered a growth of 13.97% to Rs.4,292 crore from Rs. 3,766 crore during the year 2012-13. The Earning per Share (EPS) of the Bank for FY 2012-13 stood at Rs.44.74. The Cost to Income Ratio was 44.30% for FY 2013-14. Your Bank s Net Worth increased from Rs. 21,621 Crore on 31 st March, 2013 to Rs. 24,543 crore as on 31st March, 2014. Capital Adequacy Ratio (CRAR) as on 31st March, 2013, under Basel-II stood at 10.76% and Basel-III stood at 9.97% as against the Regulatory stipulation of 9% Priority Sector The Bank has adopted various strategies during the year to achieve sustainable credit growth, improve asset quality and maintaining well diversified credit portfolio to all sections of society to ensure inclusive growth. Priority sector advances of the Bank reached at a level of 82,021 crore as on 31 st March, 2014, It constitutes 40.45% of Adjusted Net Bank Credit (ANBC). Credit to agriculture sector reached a level of Rs. 36,071 Crore, registering a growth of 33.39% over last year. Financial Inclusion Your Bank remains one of the front runners in the commitment and implementation of Financial Inclusion Initiatives. The Bank has achieved 100% Financial Inclusion in all 4404 allotted villages with population above 2000 as on 31.03.2014. It opened 107.28 lakh accounts and engaged 6072 Business Correspondents. Robust operational systems with adequate risk mitigants and best practices have been built up and are being pursued.
Asset Quality The standard assets constitute 96.85% of the Bank s credit. Gross NPAs is 3.15%. Net NPA dropped from 2.06% to 2.00% as on 31 st March, 2014 Provision coverage ratio is 58.68%. In order to address the asset quality concerns, your Bank continued vigorous follow up and recovery of NPA accounts through its efforts and also selling the impaired accounts to Assets Reconstruction Companies. Dividend The Board of Directors of your Bank has paid an Interim Dividend of Rs. 5/- per share (50%) for the year 2013-14 in the month of January 2014. With a view to conserve capital and improve the Book Value Per share, the Board has not declared Final Dividend. Initiatives During FY 2013-2014 Your Bank undertook several initiatives to foster business growth and customer services. The major highlights are: 1.20 crore New Customers were added during the year 2013-14,taking the total Customer base to 7.70 crore. Your Bank has 131 Branches of Future providing superior customer service with special attention to High Net-worth Individuals with dedicated relationship managers. 175 more such Branches of Future will be opened. 24 Retail Business Centres (RBCs) have helped grow much faster in Retail credit, hence 36 more RBCs will be opened in this year to cater our services to the Retail Segment. The Merchant Banking services have been introduced with focus on Transaction Banking Your Bank has introduced many innovative products such as o Sangini Debit card, exclusively designed for Women o IMT-Instant Money Transfer, withdraw cash without card 1 st PSU bank s initiative o Opened 19 e-galleries, which will provide 24x7 customer service and will open 200 e-galleries more this year.
o 1000+ Passbook printing Kiosks and 250 Note acceptors (cash deposit kiosks) are provided. We shall add 2000 pass book printing kiosks and 850 note acceptors this year. o Aadhar based bio-metric authentication for ATMs introduced. Corporate Social Responsibility (CSR Initiatives) As one of India s largest and most reputed banks, your bank has undertaken a variety of initiatives in the CSR, the details of those are given in our Annual Report. However some of them are 1. In terms of GOI guidelines, BOI has opened 43 Rural Self Employment Training Institutes (RSETIs) in its Lead Districts. 2. Timely help provided to Uttrakhand and Orissa Natural Disaster during last year. 3. Health care for the poor, underprivileged rural people in tribal, desert and far flung areas. 4. Promoting Community program on Health & making available upgraded Medical facilities to poor, underprivileged and deprived section of society. 5. Initiative in taking care of ecology by subsidizing Bio-gas (smokeless) stoves in Rural Area 6. Use of Alternate/Renewable Energy & making available potable water locally 7. Initiative of caring for Senior Citizens /Destitute/Orphans and mentally challenged 8. Initiative in Improving quality of education through technology for underprivileged students / others Awards and Accolades: During the year, the Bank has received the following awards- `MSME Excellence Award 2013 at the Hands of Chairman, Planning Commission, Government of India `IBA Instituted Award at BANCON 2013 for Most Innovative Mass Retail Lender for Under Served segments.
`Best Banker Award at the ` India SME Excellence Award 2013 for exemplary contribution in Banking Sector First Ever International Award for Brand Excellence in House Magazine `Taarangan by Asian Confederation of Business during 3 rd Asian Leadership Awards 2013 FIPS- Award for best technology Initiatives in Financial Inclusion National Award-2011 for implementing PMEGP scheme in West Zone. CIO 100-2013- our project adjudged as the winner. Acknowledgement I wish to place on record the valuable contributions made by the Board and the Directors of the Board who demitted office during the year viz. Shri N. Seshadri, Shri M S Raghavan, Shri Umesh Kumar, Shri P.R. Ravimohan and Shri Harvinder Singh. The Bank thanks the Government of India, the Reserve Bank of India and the Board from whom it has been receiving excellent support and valuable guidance. I thank our Business Associates, customers and shareholders without whose faith and trust, the Bank would not have reached where it has, today. These accomplishments would not have been possible but for the tireless efforts of our committed staff members. On behalf of the Bank and on my personal behalf, I would like to thank all the stakeholders and look forward to their continued patronage, guidance and support. Thank you All, (Mrs.V.R.Iyer) Date: July 10, 2014